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Bangladesh’s interim head Muhammad Yunus has written to U.S. President Donald Trump requesting a three-month pause on a 37% tariff on imports from Bangladesh, citing efforts to boost imports from the U.S., his press office said on Monday, April 7, 2025.
| Photo Credit: REUTERS
Bangladesh’s interim head Muhammad Yunus has written to U.S. President Donald Trump requesting a three-month pause on a 37% tariff on imports from Bangladesh, citing efforts to boost imports from the U.S., his press office said on Monday (April 7, 2025).
Bangladeshi exporters, especially in the garment sector, are bracing for the impact of the tariff.
In the letter, Mr. Yunus — a Nobel laureate who took charge of the interim government in August after Prime Minister Sheikh Hasina was overthrown — outlined steps Bangladesh has already taken to strengthen bilateral trade.
“We are the first country to take such a pro-active initiative,” Mr. Yunus wrote, referring to the February visit of his representative, Khalilur Rahman, to Washington to begin trade discussions. Since then, officials from both countries have been working to identify specific actions that can quickly boost American exports.
The letter notes that Bangladesh was the first South Asian country to sign a multi-year agreement to import U.S. liquefied natural gas, and is working to expand trade in agriculture, energy and technology.
According to the letter, the government is now focusing on increasing imports of U.S. agricultural produce including cotton, wheat, corn and soybeans.
To support this, Bangladesh is finalising a bonded warehousing facility that will allow duty-free access for U.S. cotton, ensuring faster delivery to local manufacturers.
Mr. Yunus said Bangladesh maintains the lowest tariffs on U.S. exports in South Asia and plans further cuts.
He also listed reforms under way to ease non-tariff barriers: “We are eliminating certain testing requirements, rationalizing packaging, labelling and certification rules, and simplifying customs procedures and standards.”
Mr. Yunus said Bangladesh’s move to approve the use of billionaire Mr. Trump aide Elon Musk’s Starlink satellite internet network was a signal of readiness to welcome more U.S. investment in high-tech sectors including civil aviation and defence.
“Bangladesh will take all necessary actions to fully support your trade agenda,” Mr. Yunus told Mr. Trump.
Bangladesh garment industry hit by tariff
U.S. buyers have begun halting orders from Bangladesh, the world’s second-biggest garment manufacturer, after punishing U.S. tariffs that pushed the government in Dhaka to plead on Monday for a three-month pause to the levies.
Textile and garment production accounts for about 80% of exports in Bangladesh and the industry has been rebuilding after it was hit hard in a student-led revolution that toppled the government last year.
Mohammad Mushfiqur Rahman, managing director of Essensor Footwear and Leather Products, said he received a letter from one of his buyers requesting a shipment halt.
“My buyer asked me to stop a shipment of leather goods — including bags, belts, and wallets — worth $300,000 on Sunday,” Rahman told AFP.
“He’s a long-time buyer and now both of us are in limbo over the issue.”
Mr. Rahman, who has been operating since 2008, usually sends goods averaging about $100,000 to the United States every month.
Published – April 07, 2025 06:49 pm IST
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Bangladesh urges Trump to delay tariff, citing moves to boost imports from U.S.
